The Ministry of Electronics and Information Technology (MeitY) on Thursday notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023, which are an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
While the 2021 rules covered social media intermediaries, the 2023 amendments substituted the terms “social media intermediary and significant social media intermediary” with “a social media intermediary, a significant social media intermediary and an online gaming intermediary”.
There is also some overlap between online games and social media intermediaries — like games available or accessed through social media platforms or using social media accounts that allow posting or sharing of achievements etc.
The new rules define an an online gaming intermediary to mean any intermediary that "enables the users of its computer resource to access one or more online games". The additional portions provide the regulatory framework for online gaming and misinformation.
The earlier rules covering social media intermediaries are still in place, and shall now cover online gaming intermediaries, with a few more clauses thrown in — no wagering on the outcome on any game will be allowed, though users can still play real money online game, which, for the purposes of the notification, is defined as "an online game where a user makes a deposit in cash or kind with the expectation of earning winnings on that deposit".
Last year, the
Centre had passed the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2022, under which a social media company, referred to as an intermediary, must ensure that users do not post or share any information that does not belong to them.
The IT rules also put the onus on the intermediary to ensure content posted on its platform is not obscene, pornographic, paedophilic, invasive of another's privacy, hate speech, promoting illegal activities or threatening "the unity, integrity, defence, security or sovereignty of India".
The 2023 amendments focus on ensuring no wagering — or betting on the outcome of any online game — is allowed, and prohibit online gaming intermediaries from hosting, or allowing users to use their resource to host — (i) an online game that is not verified as a permissible online game, (ii) advertisement or surrogate advertisement or promotion of non-permissible online game or any intermediary offering such an online game.
Furthermore, the fact-checking body, MeitY said it will soon notify, will also carry out the above-stated functions, of verifying that the intermediary is not hosting non-permissible online real money games or misleading advertisements.
Also, the amendments equate gambling with an online game that causes user harm.
The 2022 rules put the onus on social media intermediaries to ensure content posted on their platform is not obscene, pornographic, paedophilic, invasive of another's privacy, hate speech, promoting illegal activities or threatening "the unity, integrity, defence, security or sovereignty of India".
Similarly, the 2023 amendments make it the online gaming intermediary's responsibility to display a "demonstrable and visible mark of verification" of a real money online game by an online gaming self-regulatory body; before accepting any deposit in cash or kind from any user for a permissible online real money game, identify such user and verify his identity; and make clear the policy related to withdrawal or refund of a user's deposit, the manner of determination and distribution of winnings, fees and other charges payable by the user.
Further, the draft specifies that the Centre can constitute as many online gaming self-regulatory bodies as it may consider necessary for the purposes of verifying an online real money game as a permissible online real money game. These self-regulatory bodies will be given the power to declare a game a "permissible online real money game" provided it does not involve wagering on any outcome; and the online gaming intermediary and the game are in compliance with the law.
The draft also specifies certain conditions for organisations to apply for the status of self-regulatory bodies — the entity is a company registered under section 8 of the Companies Act, 2013; its membership is representative of the gaming industry; its members have been offering and promoting online games in a responsible manner; and its Board of Directors is comprised of individuals of repute, without any conflict of interest and possess special knowledge or suitable practical experience.
The self-regulatory bodies must at all times display — on their website, or mobile applicaiton — a list of permissible online games, the framework for verifying online games, and current members.
